What are the characteristics of oligopoly?
What will be an ideal response?
Oligopolies have a few firms, a homogeneous or differentiated product, less elastic demand than competitive or monopolistically competitive firms, and large barriers to entry.
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_____ increase as we move away from unanimity rule
a. External costs b. Internal costs c. Pareto efficiency d. decision-making costs
Which of the following mechanisms helps output to return to potential after a demand shock?
a. Change in business mentality b. Change in nominal wage rate c. Large changes in the capital stock d. Inability of the price level to change e. Change in inventories
If the consumer's money income were cut from $52 to $28, and the prices of J and K remain at $8 and $4 respectively, she would maximize her satisfaction by purchasing:
A. 3 units of J and 3 units of K.
B. 1 unit of J and 3 units of K.
C. 4 units of J and 1 unit of K.
D. 2 units of J and 3 units of K.
Suppose that supply increases and demand decreases. What is the most likely effect on price and quantity?
What will be an ideal response?